MIRA INFORM REPORT

Report Date :

04.07.2011

IDENTIFICATION DETAILS

Name :	VIDHI DYESTUFFS MANUFACTURING LIMITED
Registered Office :	E/27, Commerce Centre, 78, Tardeo Road, Mumbai-400034, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.01.1994
Com. Reg. No.:	11-76156
Capital Investment / Paid-up Capital :	Rs.50.020 Millions
CIN No.: [Company Identification No.]	L24110MH1994PLC076156
TAN No.: [Tax Deduction & Collection Account No.]	MUMV04639F
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on stock exchange.
Line of Business :	Manufacturer of Food Colours.
No. of Employees :	125 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 880000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mr. Mitesh
Designation :	Business Development Head
Contact No.:	91-9820610566
Date :	02.07.2011

LOCATIONS

Registered / Administrative Office :	E/27, Commerce Centre, 78, Tardeo Road, Mumbai-400034, Maharashtra, India
Tel. No.:	91-22-23514349/ 23522864/ 6347/ 56602188 / 40734747 (30 Lines) / 66602187 / 40734718 / 40734712
Fax No.:	91-22-23521980
E-Mail :	vidhi@bom4.vsnl.net.in
Factory 1 :	Plot No. 59-B, MIDC, Dhatav, Roha, District Raigad-402109, Maharashtra, India
Tel. No.:	91-2194-263873
Factory 2:	Plot No. 68, MIDC Dhatav, District Raigad-402116, Maharashtra, India
Marketing and Distribution Networks :	Located at: · Algeria · Argentina · Australia · Brazil · Bulgaria · Chile · China · Colombia · Egypt · Ei Salvador · France · Germany · Greece · Holland · Indonesia · Iran · Israel · Italy · Japan · Kenya · Malaysia · Mauritius · Mexico · Norway · New Zealand · Pakistan · Peru · Philippines · Poland · Russia · South Africa · South Korea · Spain · Tanzania · Thailand · The Netherlands · Turkey · U K · Uruguay · USA · Venezuela · Vietnam

DIRECTORS

As on 09.09.2010

Name :	Mr. Bipin Madhavji Manek
Designation :	Managing Director
Address :	Flat No. 12, Somerset House, Off Bhulabhai Desai Road, Warden Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	07.06.1956
Date of Appointment :	19.01.1994
Name :	Mrs. Pravina Bipin Manek
Designation :	Director
Address :	Flat No. 12, Somerset House, Off Bhulabhai Desai Road, Warden Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	29.02.1956
Date of Appointment :	19.01.1994
Name :	Mr. Vijay Krishnaswamirao Atre
Designation :	Director
Address :	54 Jaivijay Society, Western Express Highway, Vile Parle (E), Mumbai-400099, Maharashtra, India
Date of Birth/Age :	06.04.1925
Date of Appointment :	02.05.1995
Name :	Mr. Prafulchandra Anantlal Shah
Designation :	Director
Address :	4 Apsara Apartment, Kishorkumar Ganguli Marg, 14 C Juhu Tara Road, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	13.11.1933
Date of Appointment :	06.01.2003
Name :	Mr. Nirenbhai Dinkerrai Desai
Designation :	Director
Address :	22/2 Navrang Building, Pedder Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	12.12.1956
Date of Appointment :	10.05.2005
Name :	Mr. Mihir Bipin Manek
Designation :	Joint Managing Director
Address :	Flat No. 12, Somerset House, Off Bhulabhai Desai Road, Warden Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	08.03.1982
Date of Appointment :	31.07.2006

KEY EXECUTIVES

Name :	Mr. Mitesh
Designation :	Business Development Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	32,126,000	64.32
Sub Total	32,126,000	64.32
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	32,126,000	64.32
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	1,574,354	3.15
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	11,665,781	23.36
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	4,453,592	8.92
Any Others (Specify)	125,273	0.25
Non Resident Indians	88,672	0.18
Clearing Members	36,601	0.07
Sub Total	17,819,000	35.68
Total Public shareholding (B)	17,819,000	35.68
Total (A)+(B)	49,945,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Food Colours.

Products :

Product Description	Item Code
Synthetic Organic Colouring Matters	32.04.19
Colour Lakes	32.05.00

Brand Names :

“Vidhi”

Exports :

Products :

Food Colours

Countries :

· Europe

· Far East

· Latin America

· Australia

· Africa

Imports :

Products :

Raw Materials Chemicals

Countries :

• China
• Taiwan
• Japan
• Australia

Terms :

Selling :

L/C / Cash / Credit

Purchasing :

L/C / Cash / Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Unit	MT
Licensed Capacity	1140
Installed Capacity	1140

GENERAL INFORMATION

Customers :

Distributors

No. of Employees :

125 (Approximately)

Bankers :

v Vijaya Bank, Overseas Branch, Maker Chamber IV, 222, Nariman Point, Mumbai-400021, Maharashtra, India

v Bank of India

v HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai-400013, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan
Sicom Limited	0.000	0.009
HDFC Bank Term Loan Account	8.708	0.000
Working Capital Loans
Vijaya Bank	49.964	28.787
Bills Discounted	49.586	10.120
HDFC Bank	12.715	0.000
Kotak Mahindra Prime Limited – Vehicle Loan	0.150	0.433
Total	121.123	39.349
Unsecured Loan
Inter – Corporate Loans	0.072	0.078
Total	0.072	0.078

Note:

1) Loan from Vijaya Bank is secured by first mortgage of immovable properties , first charge by way of hypothecation of plant and machinery, spares and accessories relating to plant and machinery and other assets, hypothecation of stocks and book-debts (present and future) and personal guarantee of directors.

2) Loan from HDFC bank is secured by hypothecation of Factory Shed at Plot No -68 Roha and personal guarantee of Directors.

3) Loan from Kotak Mahindra Prime Limited is secured against hypothecation of car and personal guarantee of a director.

Banking Relations :	--
Auditors :
Name :	Bhuta Shah and Company Chartered Accountant
Address :	901/902, Regent Chambers, Nariman Point, Mumbai-400021, Maharashtra, India

CAPITAL STRUCTURE

As on 09.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.1/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50034000	Equity Shares	Rs.1/- each	Rs.50.034 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.1/- each	Rs.60.000 Millions

Issued and Subscribed Capital :

No. of Shares	Type	Value	Amount
50034000	Equity Shares	Rs.1/- each	Rs.50.034 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
49945000	Equity Shares	Rs.1/- each	Rs.49.945 Millions
	Add: Forfeited Shares		Rs.0.075 Million
	Total		Rs.50.020 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		50.020	50.020	50.020
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		170.774	142.245	126.019
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		220.794	192.265	176.039
LOAN FUNDS
1] Secured Loans		121.123	39.349	72.033
2] Unsecured Loans		0.072	0.078	0.000
TOTAL BORROWING		121.195	39.427	72.033
DEFERRED TAX LIABILITIES		0.000	1.624	3.795
TOTAL		341.989	233.316	251.867
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34.110	39.937	42.786
Capital work-in-progress		18.354	0.000	0.000
INVESTMENT		2.070	3.645	2.127
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	125.525	64.336	66.999
	Sundry Debtors	156.551	104.885	129.671
	Cash & Bank Balances	17.100	6.954	9.252
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	85.998	62.532	51.365
Total Current Assets		385.174	238.707	257.287
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	60.933	9.681	30.733
	Other Current Liabilities	6.209	17.715	2.717
	Provisions	30.577	21.577	16.883
Total Current Liabilities		97.719	48.973	50.333
Net Current Assets		287.455	189.734	206.954
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		341.989	233.316	251.867

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	711.388	392.894	306.890
		Other Income	12.312	3.736	4.391
		TOTAL (A)	723.700	396.630	311.281
Less	EXPENSES
		Manufacturing and Operating Expenses	628.888	309.033	246.023
		Human Resources	8.190	8.381	0.000
		Administrative Expenses	21.040	19.158	17.550
		Selling and Distribution Expenses	28.025	22.169	18.523
		Increase / Decrease in Stock	(28.740)	(5.264)	(1.372)
		TOTAL (B)	657.403	353.477	280.724
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		66.297	43.153	30.557
Less	FINANCIAL EXPENSES (D)		11.632	8.400	6.594
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		54.665	34.753	23.963
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.952	9.609	8.949
	PROFIT BEFORE TAX (E-F) (G)		44.713	25.144	15.014
Less	TAX (H)		16.184	8.918	6.818
	PROFIT AFTER TAX (G-H) (I)		28.529	16.226	8.196
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		128.921	112.695	104.499
	BALANCE CARRIED TO THE B/S		157.450	128.921	112.695
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	372.162	336.833	383.478
	IMPORTS
		Raw Materials	206.121	120.978	101.897
		Commission on Export Sales	0.000	0.000	0.677
		Traveling Expenses	0.000	0.000	0.300
		Exhibition and Trade Fair Expenses	0.000	0.000	1.201
		FDA Marketing Fees	0.000	0.000	1.219
		Trading Purchase	166.045	0.000	0.000
		Components and Spares Parts	1.560	0.000	0.000
	TOTAL IMPORTS		373.726	120.978	105.294
	Earnings Per Share (Rs.)		0.57	0.32	0.16

Particulars	31.03.2011
Sales Turnover (Approximately)	985.000

Expected Sales (2011-12) : Rs.1500.000 Millions.

The above information has been parted by Mr. Mitesh.

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	184.710	201.720	307.990	305.360
Total Expenditure	166.480	182.440	280.660	278.670
PBIDT (Excl OI)	18.230	19.280	27.330	26.690
Other Income	0.640	0.370	0.180	0.860
Operating Profit	18.870	19.660	27.510	27.550
Interest	4.5300	4.220	5.810	8.070
PBDT	14.340	15.430	21.700	19.480
Depreciation	2.590	2.670	2.670	1.250
Profit Before Tax	11.750	12.770	19.030	18.230
Tax	4.440	4.800	7.260	7.040
Profit After Tax	7.310	7.970	11.770	11.190
Net Profit	7.310	7.970	11.770	11.190

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.94	4.09	2.63
Net Profit Margin (PBT/Sales)	(%)	6.29	6.40	4.89
Return on Total Assets (PBT/Total Assets}	(%)	10.66	9.02	5.00
Return on Investment (ROI) (PBT/Networth)		0.20	0.13	0.08
Debt Equity Ratio (Total Liability/Networth)		0.99	0.46	0.70
Current Ratio (Current Asset/Current Liability)		3.94	4.87	5.11

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Capital Goods	0.040	0.041	0.254
Other Goods	54.972	7.213	22.961
Expenses	5.921	2.427	7.518
Total	60.933	9.681	30.733

OPERATIONS:

During the year the Company has achieved a turnover of Rs.711.388 Millions as compared to Rs.392.894 Millions of previous year registering a growth of 81.06%. The net profit after tax has also gone up from Rs. 16.226 Millions to Rs. 28.529 Millions recorded an increase of 75.82% as compared to previous year.

The Company has manufactured 1083.285 M. Tons of Food colors against 994.147 M. Tons in the previous year.

The Company has increased its export market share as well local sales on account of persistent marketing efforts. The Company is currently undergoing an expansion doubling its production capacity in the 1^st phase, the new production facility is scheduled to come in production in September 2010. The Directors assure to strive for a bright future for the Company.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure and Developments

Subject manufactures edible food colours as ingredient for foodstuffs, pharmaceuticals, confectionery, pet foods, healthcare, dairy, soft drinks and cosmetic industries. The Food colours are intended for industrial use. The demand for the colours is derived directly from its customers and end users through the company’s various appointed distributors and country specific suppliers. The company is among the acknowledged world wide leaders in the manufacturing of Food Colours.

Subject has successfully entered the field of food colours to primarily cater to niche applications. The company’s colors enhance visual characteristics of a variety of products resulting in value added end products for different market segments.

Opportunities

Processed food industry has done exceeding well even in the recent turbulent times with more and more people world wide choosing foods, drinks and other consumables off the shelf than making it themselves the company sees a steady increase in demand of its colors in times to come.

Performance

The Turnover of the Company during the financial year 2009-2010 increased by 81.06% as compared to the last financial year i.e. 2008-2009 on account of very healthy demand for the Company’s products world wide. The production utilization capacity was increased by 8.96% as compared to previous year. The profit after tax of the Company was increased by 75.82% as compared to previous year.

As the products of the company are used by food and pharmaceutical industry, The Management is confident that ISO 9001:2008 and ISO 22000-2005, Hazard Analysis and Critical Control Point Evaluation (HACCP), KOSHER and HALAL Certification will help the Company to increase its market share during the current year.

Outlook

In an endeavor to remain supremely competitive the Company has undertaken the task of modernizing and installing new process equipments in a phase wise manner, to boost quality and quantity. Adopting the most cost effective manufacturing practices and changing with changing times will ensure that the Company continues to grow.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10204274
Corporate identity number of the company	L24110MH1994PLC076156
Name of the company	VIDHI DYESTUFFS MANUFACTURING LIMITED
Address of the registered office or of the principal place of business in India of the company	E/27, Commerce Centre, 78, Tardeo Road, Mumbai-400034, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai-400013, Maharashtra, India
Email	rbbform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum Recording Past Transactions of Creation of Mortgage by Delivery of Title Deeds.
Date of instrument Creating the charge	06.10.2010
Amount secured by the charge	Rs.94.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment Working Capital facility shall payable on Demand and Term Loan facility shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge The Company created an equitable mortgage by way of deposit of title deeds in respect of its immovable properties as stated under item No.15 as security for the due repayment of Rs.94.000 Millions by the Company, including principal amount of the Facility, interest, liquidated damages, costs, charges and expenses etc. Others The Charge created in favour of HDFC Bank Limited for Rs. 94.000 Millions shall rank pari passu with the charge created in favour of Vijaya Bank for its Rs. 158.500 Millions.
Short particulars of the property charged	Immovable properties situated at Plot No.68, MIDC, Dhatav, Roha, Raigad, Maharashtra 402116.
Particulars of the present modification	The present modification is for furnishing additional security of immovable property of the Company situated at Plot No.68, MIDC, Dhatav, Roha, Raigad, Maharashtra 402116, in addition to securities already furnished by the company at the time of creation of the charge and, there is, therefore no change in amount of charge which stands secured at Rs. 94.000 Millions in favour of the HDFC Bank Limited.

Trade References:

• Manish Chemicals, Mumbai
• Shree Krishna Food Products

Fixed Assets:

• Land
• Factory Building
• Administrative Building
• Office Premises
• Furniture and Fixtures
• Office Equipments
• Plant and Machinery
• Computer
• Telephone
• Vehicles

AUDITED STATEMENT OF FINANCIAL RESULTS OF THE YEAR ENDED ON 31^ST MARCH 2011

Rs. in Millions

Particular	Quarter Ended (Audited)	Year Ended (Audited )
	31.03.2011	31.03.2011
(a) Net Sales / Income from operations	301.996	986.210
(b) Other Operating Income	3.366	13.573
Total Income	305.362	999.783
Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	(2.943)	(7.577)
b) Consumption of raw materials	80.475	294.788
c) Cost of traded goods	173.282	486.765
d) Employees cost	2.376	9.414
e) Depreciation	1.264	9.179
f) Other expenditure	25.569	127.244
Total	279.913	978.813
Profit from operations before other income, interest and exceptional Items	25.449	918.813
Other income	0.850	2.053
Profit before interest and exceptional Items	26.306	83.022
Interest	8.073	23.643
Profit after Interest but before Exceptional Items	18.233	60.379
Exceptional Items	--	--
Profit (+)/Loss(-) from Oridinary Activities before tax	18.233	60.379
Tax expense
Current year	7.045	23.549
Net Profit (+)/Loss(-) from Ordinary Activities after tax	11.188	36.830
Extra Ordinary items	--	--
Net Profit (+) / Loss (-) for the year period	11.188	36.830
Paid up equity share capital (Face value of Rs.10/- per share)	50.020	50.020
Reserves excluding revaluation reserves as per balance sheet of previous accounting year	--	207.605
Earning per share (EPS)
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	0.22	0.71
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	0.22	0.71
Public shareholding
Number of shares	17819000	17819000
Percentage of shareholding	35.68	35.68
Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	--	--
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	--	--
Percentage of shares (as a % of total share capital of the company)	--	--
b) Non Encumbered
Number of shares	32126000	32126000
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00	100.00
Percentage of shares (as a % of total share capital of the company)	64.32	64.32

Note:

1) The above audited results are reviewed by the audit committee and approved by the board of directors at the meeting held on 30^th May, 2011

2) The company’s main activity in manufacturing and trading of food colours and trading chemicals which consulates as a single reportable auguring in co accounting standard (AS17) issued by the institute of chartered accountant of India

3) The company is in process of expecting and construction of new factory shed is at advanced stage

4) Investor complaints received and disposed off during the quarter ended March 31, 2011

a) Complaints pending at the beginning of the quarter 00

b) Complaints received during the quarter 00

c) Disposal of complaints 00

d) Complaints lying unresolved of the and of the quarter 00

5) Previous years / quarter figures have been regrouped/ rearranged / reseal wherever necessary.

AUDITED STATEMENT OF ASSETS AND LIABILITY OF THE YEAR ENDED ON 31^ST MARCH 2011

Rs. in Millions

Particular	Audited
	31.03.2011
SHAREHOLDERS FUNDS
Share Capital	50.020
Reserves & Surplus	207.605
Loan Funds
Secured Loan	223.112
Unsecured Loans	44.404
Deferred tax liability	0.000
Total	525.141
FIXED ASSETS
Gross Block	126.563
Less: Accumulated Depreciation	97.364
Net Block	29.199
Capital Work in Progress	80.306
Investment	1.357
CURRENT ASSETS, LOANS & ADVANCES
Inventories	126.309
Sundry Debtors	288.672
Cash & Bank Balances	26.831
Other Current Assets	112.601
Loans & Advances
Less : CURRENT LIABILITIES & PROVISIONS
Other Current Liabilities	125.204
Provisions	14.929
Total	525.141

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.58
UK Pound	1	Rs.71.75
Euro	1	Rs.64.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.